Vistra, a leading global trust, fund administration and corporate services provider, today released the eighth edition of its Vistra 2020 industry research report. The report reveals that the corporate services industry has never been so vital in underpinning globalisation, from the facilitation of cross border capital flows, to the provision of local compliance, legal and regulatory expertise to companies and individuals wishing to do business cross border.

“As the industry responds to geopolitical upheaval, as businesses and jurisdictions come to terms with the convergence of new regulatory frameworks, coupled with new technologies, the corporate services industry is rich with both challenges and opportunities,” said Jonathon Clifton, Regional Managing Director, Asia and Middle East, Vistra. “In this environment, our strong view is that the global financial system is dependent on the corporate services industry in providing the infrastructure to enable global economic development.”

Drawing on the insight of some 800 industry figures, this year’s Vistra 2020 report identified three important trends that are defining today’s corporate services industry:

Changing sector to meet evolving geopolitical system

– Ongoing adjustment to globalisation has created political pressure for governments to reassert their role in establishing rules for business. However, this hasn’t stopped businesses from becoming more international in their outlook and ambitions. Developments in the global economy (53%) along with changing regulation (62%) are seen as the most pressing challenges by a majority of respondents and are expected to have a major impact on business.

– Despite understandable caution about the challenges ahead, industry professionals are broadly upbeat in their ability to generate growth and satisfy client demand. 83% are confident in their ability to satisfy clients’ expectations; 74% are confident in their own organisation’s growth prospects.

Increasingly politicised regulations

In recent years, the corporate services industry has been subject to an extraordinary amount of regulatory change, which creates business opportunities to the industry that thrives on helping clients navigate a difficult landscape. Majority of the respondents (74%) are ramping up their investments in compliance and, as a result, will be able to demonstrate that they and their clients have nothing to hide, whether moving money across borders or establishing trading companies in new jurisdictions.

– 78% are confident in their ability to achieve timely and consistent compliance with new regulations, even though similar proportions (73%) admit that the speed and frequency of change is a challenge.

– 85% expect the political pressure that has forced greater scrutiny of tax and financial data to continue unabated, even though the clear majority (76%) believe that governments have underestimated the challenge that automatic exchange of information places on their business.

Unmet value and threat of new technology

Technological innovation is making impacts everywhere and the corporate services industry is no exception. With applications such as robo-advisory and biometrics pushing at the door – all of which could have transformational implications for the industry – businesses may be too relaxed.

– Although majority of the respondents (78%) are upbeat about the prospects of technology delivering efficiency savings, only 20% of industry professionals expect technological change to have a notable impact on their business, showing complacency.

– Today, the focus for many in the industry is firmly on bread-and-butter issues such as automating “know your customer” and anti-money laundering requirements, rather than on more exotic technologies such as AI and blockchain. Only 22% is looking into blockchain, which is relatively low considering the potential upheaval that crypto-currencies could create in the industry.

Senior executives from Vistra outlined five predictions for the coming year:

– The tech wake-up call: The industry has yet to feel the force of technological disruption. If they are not careful, they may soon find themselves scrabbling to catch up, or fighting for survival.

– Politicised regulation will continue in the short term: It is likely that governments will continue to target the industry with crowd-pleasing transparency drives, at least in the short term.

– PR war will turn a corner: There is hope that the public will become more supportive of the industry – and politically-motivated regulation will inevitably soften as a result.

– Corporate services industry will continue to change shape: Clients’ demand for scale will drive further consolidation. Changing conditions may also give rise to consolidation among jurisdictions, as some jurisdictions struggle, or choose not, to keep up with the burden of ongoing regulatory change.

– Emerging markets will increase in importance: Business in emerging markets including Middle East, China and India are expected to mature rapidly over the next few years.

Well, unlike many news organisations, we have no sponsors, no corporate or ideological interests. We don't put up a paywall – we believe in free access to information of public interest. Media ownership in Australia is one of the most concentrated in the world (Learn more). Since the trend of consolidation is and has historically been upward, fewer and fewer individuals or organizations control increasing shares of the mass media in our country. According to independent assessment, about 98% of the media sector is held by three conglomerates. This tendency is not only totally unacceptable, but also to a degree frightening). Learn more hereWe endeavour to provide the community with real-time access to true unfiltered news firsthand from primary sources.
It is a bumpy road with all sorties of difficulties. We can only achieve this goal together. Our website is open to any citizen journalists and organizations who want to contribute, publish high-quality insights or send media releases to improve public access to impartial information. You and we have the right to know, learn, read, hear what and how we deem appropriate.Your support is greatly appreciated. All donations are kept completely private and confidential.Thank you in advance!

Mirage News . All timestamps on this site are AEST/AEDT and all times in the articles are local times unless indicated otherwise.

All trademarks and rights are owned by their respective owners. All content is used for news reporting purposes.
For news reporting purposes, we rely on fair use (fair dealing) [1] [2]for textual and media content to keep the public informed on the developments. If you are a person mentioned in the story or you are a copyright holder and believe that any content should be removed, revised or taken down, please contact us. View the disclaimer page here